VANCOUVER, B.C., June 29 /CNW/ - CAPELLA RE
SOURCES LTD. (TSX VENTURE:CPS)
("CAPELLA" or the "Company") is pleased to announce that it has completed its
previously announced private placement financing with Dundee Securities
Corporation ("Dundee") and the previously announced acquisition of Tripple
Uranium Resources Inc. ("Tripple").
Completion of Financing
The financing consisted of 7,730,000 Flow-Through Common Shares (the "FT
Shares") at a price of $1.10 per FT Share for gross proceeds of $8,503,000 and
2,014,600 Units at a price of $1.10 per Unit, each Unit consisting of one
common share of the Company and one-half of one transferable common share
purchase warrant of the Company at an exercise price of $1.40, exercisable on
or before December 29, 2008 (the "Warrants"), for gross proceeds of $2,216,060
(the "FT Shares and the Units collectively called the "Offering"). The total
aggregate proceeds for the Offering were $10,719,060.
Dundee received a cash commission of $696,738.90, being 6.5% of the
aggregate gross proceeds of the Offering. In addition, Dundee received 633,399
broker warrants exercisable for common shares of the Company, being 6.5% of
the number of FT Shares and Units sold under the Offering (the "Broker
Warrant"). The Broker Warrant is exercisable at a price of $1.27 per common
share exercisable on or before December 29, 2008.
In the event that the Company's common shares trade at a closing price on
the TSX Venture Exchange of greater than $2.20 per share for a period of 20
consecutive trading days from October 30, 2007, the Company may accelerate the
expiry date of the Warrants by giving notice to the holders thereof and in
such case the Warrants will expire on the 30th day after the date on which
such notice is given by the Company.
The securities issued in the Offering are subject to a hold period
expiring on October 30, 2007.
Completion of the Acquisition of Tripple
The Company is also pleased to announce that it has completed the
acquisition of Tripple. Pursuant to the terms of the acquisition, the Company
will issue 0.75 shares of the Company for each outstanding common share and
warrant of Tripple.
The securities issued in connection with the acquisition of Tripple are
subject to a hold period expiring on October 30, 2007.
Use of Proceeds from the Offering
The gross proceeds from the sale of the FT Shares will be used for
Canadian Exploration Expenses (within the meaning of the Income Tax Act
(Canada) (the "ITA"), with the Company using its best efforts to ensure that
such Canadian Exploration Expenses qualify as a "flow-through mining
expenditure" for purposes of the ITA, related to the exploration of the
Company's exploration projects acquired via the acquisition of Tripple, having
projects located in Nova Scotia, New Brunswick and Newfoundland and Labrador.
The Company will renounce such Canadian Exploration Expenses with an effective
date of no later than December 31, 2007.
The net proceeds from the sale of the Units will be used for exploration
activity, acquisitions, and for general working capital purposes.
About Capella Resources Ltd.
The Company is a publicly traded, junior exploration company with over
20,000 mineral exploration claims covering an aggregate land area coverage of
over 1,010,000 acres (407,800 hectares) in Atlantic Canada (Nova Scotia, New
Brunswick and Newfoundland and Labrador). The Company holds a 100% interest in
the Tinton Gold Project located 15 kilometres west-northwest of the famous and
historic Homestake Mine in the Black Hills at Lead, South Dakota. The property
consists of 1270 hectares contained in 157 unpatented mining claims. The
Company also holds a 100% interest in the Nevada and Dorado Gold and Copper
properties located in the Maricunga Gold and Copper District approximately 700
kilometres northwest of Santiago, Chile. The properties are comprised of ten
exploration claims and six exploitation claims totaling a cumulative 3,500
hectares in area.
For further information, please contact Skyline Investor Relations at
Toll Free 1-866-433-3356 or 604-733-3356 or by e-mail at firstname.lastname@example.org.
Per: R.A. "Bruce McDonald"
R.A. Bruce McDonald, Chairman of the Board
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Skyline Investor Relations Brian Cole, Toll
Free: 1-866-433-3356 or 604-733-3356 email@example.com